A northeast Dallas hotel is getting a makeover and new branding as a luxury Magnolia Hotel.

Owners of the 293-room Holiday Inn at 6070 N. Central Expressway north of Mockingbird Lane will convert the property to the Magnolia flag.

After just spending $9 million on upgrades for the building, owner TriGate Capital is investing an additional $2 million to improve the nine-story hotel. The property is across the highway from the George W. Bush Presidential Center and Southern Methodist University.

“It makes a lot of sense to capitalize on this market that needs another boutique hotel,” said Leigh Hitz, CEO of Stout Street Hospitality, which operates six Magnolia Hotels around the country.

The Denver-based hotel company opened its first Magnolia Hotel in 2000 in downtown Dallas, converting the historic Magnolia Building, which previously housed offices.

Hitz said the new property will serve the Park Cities and nearby North Dallas neighborhoods.

“We think the demand is there for a Magnolia Hotel,” she said. “Along with visitors, there are large business clients in the area.”

TriGate bought the hotel after a foreclosure in 2010. The property had operated for years as a Radisson Hotel.

“It was extremely tired, and we did a gut job renovation,” said TriGate managing member Jonathan Pettee. “We are continuing to spend money on the hotel.

“We think our capture of business travelers and social business will increase as a Magnolia Hotel,” Pettee said.

The hotel is about 80 percent occupied. Upgrades will start next month with the rebranding of the property, he said.

“We will have all new signage and a new water feature at the entry,” Pettee said. “A lot of the furnishings will be improved.

“And we are going to modify the restaurant with a more upscale feel.”

The hotel already has more than 12,000 square feet of event and meeting space. Along with the new Magnolia Hotel, TriGate owns office and retail properties in North Texas.

Stout Street Hospitality also operates Magnolia Hotels in Houston, Denver and Omaha, Neb. The company just opened a new hotel in St. Louis in a 91-year-old historic building.

“We are still looking at locations,” Hitz said. “We would love to be in Austin.”